# § 4402. Exemptions
No tax shall be imposed by this subchapter—
**(1)** **Parimutuels** On any wager placed with, or on any wager placed in a wagering pool conducted by, a parimutuel wagering enterprise licensed under State law,
**(2)** **Coin-operated devices** July 1, 1980
On any wager placed in a coin-operated device (as defined in section 4462 as in effect for years beginning before ), or on any amount paid, in lieu of inserting a coin, token, or similar object, to operate a device described in section 4462(a)(2) (as so in effect), or
**(3)** **State-conducted lotteries, etc.** On any wager placed in a sweepstakes, wagering pool, or lottery which is conducted by an agency of a State acting under authority of State law, but only if such wager is placed with the State agency conducting such sweepstakes, wagering pool, or lottery, or with its authorized employees or agents.
---
**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 525; Pub. L. 85–859, title I, § 152(b), Sept. 2, 1958, 72 Stat. 1305; Pub. L. 89–44, title IV, § 405(a), title VIII, § 813(a), June 21, 1965, 79 Stat. 149, 170; Pub. L. 94–455, title XII, § 1208(a), Oct. 4, 1976, 90 Stat. 1709; Pub. L. 95–600, title V, § 521(c)(1), Nov. 6, 1978, 92 Stat. 2884.)
## Editorial Notes
### References in Text
Section 4462, referred to in par. (2), was repealed by , , .
### Amendments
1978—Par. (2). substituted “(as defined in section 4462 as in effect for years beginning before )” for “with respect to which an occupational tax is imposed by section 4461” and “(as so in effect), or” for “if an occupational tax is imposed with respect to such device by section 4461, or”.
1976—Par. (3). , among other changes, substituted in heading “State-conducted lotteries, etc.” for “State-conducted sweepstakes.”, and struck out provision that no tax be imposed on any wager placed in a sweepstakes, wagering pool, or lottery in which the ultimate winners are determined by the results of a horse race.
1965—Par. (2). , substituted “section 4462(a)(2),” for “section 4462(a)(2)(B),”.
Par. (3). , added par. (3).
1958—Par. (2). inserted provisions exempting from the tax amounts paid to operate a device described in section 4462(a)(2)(B), if an occupational tax is imposed with respect to such device by .
## Statutory Notes and Related Subsidiaries
### Effective Date of 1978 Amendment
> “The amendments made by subsections (b) [repealing sections 4461 to 4464 of this title] and (c) [amending this section and
>
> ] shall apply with respect to years beginning after
>
> .”
, , , provided that:
### Effective Date of 1976 Amendment
> “The amendment made by subsection (a) [amending this section)] shall apply with respect to wagers placed after
>
> ”.
, , , provided that:
### Effective Date of 1965 Amendment
> “The amendments made by sections 403 [amending sections 4461 and 4462 of this title] (relating to occupational tax on coin-operated devices) and 404 [repealing sections 4471 to 4474] (relating to occupational tax on bowling alleys, billiard and pool tables), and by subsections (a) [amending this section], (b) [amending
>
> ] and (d) [amending
>
> ] of section 405 (relating to technical and conforming changes) shall apply on and after
>
> .”
, , , provided in part that:
> “The amendment made by subsection (a) [amending this section] shall apply with respect to wagers placed after
>
> .”
, , , provided that:
### Effective Date of 1958 Amendment
> **“(1)** shall be the amount reckoned proportionately from such effective date through June 30, 1959, and
>
> **“(2)** shall be due on, and payable on or before, the last day of the month the first day of which is such effective date.”
, , , as amended by , , , provided that: